The roofing industry in North America is expected to reach $47.5 million+ in 2025, growing at a compound annual growth rate (CAGR) of 5.9% from 2017 to 2025.

Want to become part of this booming industry? But unsure about how to start your own roofing business?

Then, you’re in the right place.

We’ve put together this comprehensive guide to help potential roofing business owners set up and run their roofing companies. Let’s start with the basics.

Step to Follow to Start Your Own Roofing Business

Here’s what you need to do to start your own roofing business.

1. Make a Plan for Your Roofing Business

Every small business starts with an idea and a well-documented business plan. As a business owner, it helps to map out the specifics of your new business and prepare yourself for challenges you may need to face.

Let’s take a look at a few points that you should consider:

  • What are the startup and ongoing costs of roofing businesses?

You need to pay state and federal filing fees to register your roofing company.

Though you can start a roofing company from your home, you will need more space in the future. You’ll also need storage space for roofing materials.

You should also consider the costs involved in the transportation of roofing materials, overhead expenses of your company, office supplies, and wages of the roofers and other employees you’ll hire.

You’ll also need to pay insurance premiums for liability insurance and workers’ compensation.

  • Who is your target market?

Roofing businesses prefer to work with individuals or companies who have multiple properties as it brings more roofing work their way.

Many roofers also prefer to work with customers who own a property with a flat roof instead of those who own a property with a steep roof.

While some roofing contractors offer services across states, you can also choose to set up a local business and cater to customers in your own region.

All of these points will help you identify who your ideal customers are.

  • What type of roofing service will you offer?

You need to decide on the type of roofing service you will offer. As a roofer, you can provide your customers with services such as new roofing, roof replacement, roof repair, leakage repair, and more.

You should also determine whether you want to offer residential roofing or commercial roofing services.

  • How much can you charge customers?

You should finalize a pricing model for your roofing work to determine how you’ll charge your customers. You need to evaluate the total expenses on transportation, roofing material, and roofers’ wages and add your profit margin.

You should also research how much your competitors are charging their customers so that you can make your business stand out from them.

On average, you can charge $5K-$10K for roof replacement services based on the area and type of roofing. A full roof replacement costs more than roofing over services (putting a new layer on the existing roof).

You can charge between $350-$450 for a roof inspection, $500-$700 for roof cleaning, and $750-$1000 to repair roof leaks.

2. Pick a Name and Business Structure for Your Roofing Company

The next step is to name your company. You should choose a business name that is unique, memorable, and relevant to the services you offer. You should also check with the Secretary of State to ensure no one else has registered it already.

Along with selecting a name for your roofing company, you will also have to choose a business structure. As a new business owner, you can consider forming a Limited Liability Company (LLC) to start a roofing company.

Forming an LLC reduces your liabilities as a business owner and protects your personal assets. Many small businesses prefer this entity type because of the flexibility it offers in operational, management, and taxation structures.

To form an LLC, you will have to file Articles of Organization with the Secretary of State’s office and choose a Registered Agent who will be responsible for receiving all legal paperwork on your behalf.

You should also create an LLC Operating Agreement to define the roles and responsibilities of each of the members (owners) of your LLC.

Along with state filing, you’ll also have to file for an Employer Identification Number (EIN) with the internal revenue service (IRS). You’ll need this nine-digit number or tax ID to file your taxes, hire employees, open a business bank account, and more.

The entire process of business formation is challenging for new business owners. But we can do all of the heavy lifting for you. Our LLC formation service is discounted to $149 (plus state filing fees).  This is much less than other services in the market or hiring an accountant and the LLC filing package includes: Federal EIN, State Articles of Organization, an LLC Operating Agreement, 5 other essential legal documents, cash back on a business bank account, and a free tax savings analysis for your new LLC business.

. All you have to do is fill out one  simple application to form an LLC for your roofing company.

3. Business Permits and Licences

You may need contractor licensing to work as a roofer and set up a roofing company. However, roofing licensing and certification rules vary from state to state, and city and county.

You should check with the State Contractors’ Board or the local authorities in your state to see which business permits and licenses you will need to run a local business in the roofing industry.

4. Buy Business Insurance

Starting a roofing business comes with a lot of responsibilities. You should buy the necessary types of insurance to protect your business and ensure the well-being of your workers.

You should buy the following insurance plans for your roofing company:

  • General liability insurance to cover you for any property damage caused by the roofing professionals associated with your company
  • Workers’ compensation insurance to cover your employees if they become sick or injured on the job
  • Commercial vehicle insurance to cover for any damage to your company-owned vehicles that employees use for work

We have partnered with the most trusted insurance agent to help your small business get the right coverage for your roofing company.

5. Promote Your Roofing Company

The next step is to help customers find your roofing business when they’re looking for the services you offer.

You should:

  • Build a business website and list your services on it.
  • Create profiles for your business on platforms like Google, Facebook, Yelp, and Thumbtack.
  • Showcase the portfolio of your roofing company.
  • Build a brand presence on various social media channels.
  • Come up with effective advertising strategies to promote your roofing business and services.

Frequently Asked Questions

1. How much does it cost to start a roofing business?

You may need $15,000 to $20,000 to start your roofing business. This includes registration fees, wages of roofers, material costs, transportation costs, and professional liability insurance premiums.

2. How do I start a roofing business?

To start a roofing business, you should:

  • Write a business plan.
  • Pick a name for your business.
  • Choose a business structure.
  • Register your roofing company.
  • Decide on the type of services you’ll offer to customers.
  • Hire a roofing contractor, roofers, and other professionals.
  • Create a marketing strategy.
  • Deliver a good experience to your customers and build loyalty.

3. Is a roofing business profitable?

Yes, a roofing business is a profitable business idea because every structure requires a roof, from schools to houses, offices, city hall, and other buildings. Roofs require periodic inspection and maintenance, which means that you’ll never run out of roofing work.

4. What do I need to start a roofing company?

To start a roofing company, you need:

  • Business registration
  • Skilled roofers and labors
  • Professionals with marketing and sales skills
  • Roofing materials
  • Roofing work training
  • Business insurance

5. How do you price roofing jobs?

While pricing your roofing services, you should:

  • Understand the scope of work.
  • Estimate material costs and labor costs.
  • Calculate overhead expenses.
  • Add your desired profit margin to the break-even cost of the roofing job. Most roofing contractors aim for a profit margin of 6.3% and above, as per industry standards.
  • Create and share your roofing bid.

Are You Ready to Start a Roofing Business?

Starting a roofing company can be a lucrative business option. You should follow all of the steps mentioned above to set up your new roofing business.

Do you have other questions about starting a roofing business? Ask them in the comments below. We’ll be happy to help you set up your small business.